The income statement of Hanalei International Inc. reported the following condensed information:

Hanalei's balance sheet contained these comparative data at December 31:

Hanalei has no depreciable assets. Accounts payable pertain to operating expenses.
\section*{Instructions}
Prepare the operating activities section of the statement of cash flows using the direct method.
Prepare the operating activities section-indirect

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Revenues Operating expenses HANALEI INTERNATIONAL INC. Income Statement For the Year Ended December 31, 1998 Income from operations Income tax expense Net income $430,000 280,000 150,000 47,000 $103,000